Shortly after the opening bell, we will be buying 460 shares of Nike at roughly $72.75. Following the trade, Jim Cramer’s Charitable Trust will own 1,000 shares of NKE, increasing its weighting to about 1.85% from 1%. Nike shares are up in premarket trading Wednesday after the athletic apparel and footwear maker reported much better-than-expected quarterly results the prior evening. As we outlined Tuesday night, the conference call left us even more encouraged about the turnaround taking place under CEO Elliott Hill. His “Win Now” strategy showed early signs of success, with Nike’s running business accelerating sequentially to over 20% growth in the quarter, wholesale revenues returning to growth, and inventory levels normalizing. The quarter wasn’t perfect, and there’s still a lot of work needed to get done to fix China, the Converse brand and its digital business, in addition to mitigating tariffs. Still, the results should add credibility to management’s broader plan. When we started a position in Nike last week, we put a small amount on because we wanted to participate in some upside if the turnaround was on track. Now that our confidence in the turnaround has increased, we are scaling deeper into the position even with shares up nicely in premarket trading. In the days ahead, if the market comes under pressure from temporary concerns about a prolonged government shutdown and it takes Nike down with it, we’ll use that weakness to continue adding to our position. (Jim Cramer’s Charitable Trust is long NKE. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Read More: We’re adding to our position in a turnaround play that just showed it is on